HomeMy WebLinkAbout0341UNI~M COV8NAN7'S. Horrowsr snd Lender covenant and ajree as follows:
1. I~r~e~f ot hi~t1M1 ~i INerqR. 8orrowe~ shall pranptl~ pay when due the pri~cipal ot and interat on the
indebtednas evideaad by the Note. prepayment and late char~ees a~ p~ovidcd in ~he Note. aod the principal ot and intetest
oa any Futu~+e Adv~nces secur~ed by this Mort=ate.
2. E~ tor'fn~M a~i l~aewee. Subject to applicabk law ur to a written waive~ by Lender, eor~o.~~ ~~n wr
to Lender oo the day monthly installments of principal and interes~ arc ~yaMe unde~ the Note. until the Note is paid io full,
a iutn (herein "Fundr'~ cqwl to one-tweltth of the yeary~ tax~Y and assasmeots which may attain priority over this
Mortsase. and ~round ~ts on the Poopeny. if any. F+lus one-~wel(~h of yearly premium instalimenu for hazard iosurance.
plus oae-twellth ot yearly premium installmen~s for mortgage insunncc, if iny, all as reasonably a~imated initially and irom
time to time by l.eader on tl~e buis of assessmcnts and hills and reasonable atimata lhercof.
The flmds shall be I~eld in an institution the deposia or ~ccounts of ~rhich are insurcd or suanntoed by a Federal ot
state a~oncy (includina Lender if Lender is such an institution). 1_eoder shall apply the Funds to pay said taxa. asseuments.
iruursnce premiums ind gtound rents. l.ende~ may nat charge for se- holding sod applying the Fundc. analyzing said account.
or verityin= aod compilina uid assessments and bills, unless ~ender pays Borrower intercst on the Funds and applicable law
permits Lender to make such a charge. Borrower aad l.ende~ may ag~ce in v-riting at ~he time ot ezxution ot this
Mort~aje tbat i~tetat on the Funds shall be paid to Borrower. and unless such agrcement is made or applicable law
rtquira such intetest to be paid. Lende~ shall not be rcquircd ta pay Borrowe~ any i~tercst or earnings on the Funds. Lender
sluU aive to Borrower~ without charge, ao annual accounting of the Funds showing credits and dcbits to the Funds and ihe
purpose for which each debit to the Funds wu made. The Funds arc plodged u additional security for the sums secured
by this Mort=aae.
If tbe amou~t of the Funds heM ¢y Lender, toge~her wilh the future monthly installments of Funds payable prior to
t6e due data of taxes. assessments. ~taunnce premiums and ground rcnts, shall exceed the amount required to pay said tua.
aue~meAts. insurance premiums and ground rents u they fall due, such exccss shall be. at Borrower's option, either
promptly repaid to Borrower or cred~ted to Borrower on monthly installments ot Funds. if the amount ot the Funds
hdd by Lender shall not be suf6cient to pay tues. assessments. insurance prcmiums and ground rents as they tall due.
Bocroaer sball pay to Lender any amount ~eassary to make up the deficieocy within 30 days from the date notice is mailed
by Lender W Borrower cequestin8 paYment thereof.
Upon paymeat ia full of dl sums secured by this Mongage, l.ender shall promptly retund to Borrower any Funds
held by Leoder. .If under parsgraph 18 hereof the Property ia sold or the P~operty ~s othenvise acquircd by Lender, Lender
s6a11 apply. no later tban immodiately prior to the sale ot the Pmpeny or its acquisition by Lender. any Funds held bv
I.eader at'the time of application as a credit agaiost the sums securcd by this Mongage.
3. A~plicat~ ot Pqmeats. Unless applicable Isw provides otherwix, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 heroof. ttnn to interest payable on the Note, then to the principal of the Note, and then to interest and
priacipd on any Future Advanas.
1. Char~es; Lient. Borrower ~hall pay all taxes. assessments and othcr charges. fines and impositions attributable to
the prope~ty which may attain a priority over this Mortgage, and leauhold payments or grouna rents, if any, in the manner
providod under paragraph 2 hereof or. ~f not paid in such manner, by Borrower making payment, when due, directly to the
payee thereof. Borrower shall promp~ly fumish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall prompliy discharge any lien which hu priority over thic Mongage: provided, that Borrower shall not be
requircd to dixharge any such lien so long as Borrower shall agree in w~ritmg to the payment o( the obligation secured by
such lien in a manner acceptable to Lender, or shail in good taith contest such lien by, or def~nd enforcement of such lien in,
legal proceedings waich operate to prevent the enforcement of the lien or forfeiture of the Propeny or any part thercof.
S. Hazard lawnwce. Borrower shall ketp the improvements nox existing or hereafter erected on the Propeny insured
against loss by fire, hazards included wilhin the term "exteoded coverage", and such other hazards as Lender may require
and in such amounu and for such periods as Lender may require: provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums sec~ired by this Mortgage.
'il~e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by LenAer. provided,
that such approval shall not be unreazonably withheld. All premiums on insurance polic~es shall be paid in the manner
provided uoder paragraph 2 hereof or. ~f nut pai~ in such maoner, by Borrower making payment, when due, directly to the
insurance carrier. ~
All insurance policies and.renewals therrof shall be in form acceptable to Lender and shal) include a standard mortgage
clause in favor of and in form acceptable to Lender. I.ender shall have the right to holJ the policiu and renewals ihereof,
and Borrower shall promptly furn~sh to Lender all rencwal notices and all receipts of paid premiums. In the event of loss.
Sorrower shall grve ~rompt notice to the insurance carrier and l.ender. Lender may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrow•er otherwise agree in wr~ting, insurance proceeds shall be applied to rcstoration or repair of
the Prop~rty damaged, provided such restora~ion or rcpair ~s economically (easible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not economically feasible or it the security of this Mortgage would
be impaired. the insurance proceeds shall be applied to the sums secureJ by this Mortgage. with the excess, if any, paid
to Borrower. If the Property is abandoncd by Borrower, or il Borrower fails to respond to Lender within 3U days from the
date notice is mailed by I.ender to Borrower tbat the insuran:e carrier otiers to settle a claim for insurance benefits, Lender
is authorized t~ collect and apply the insurance proceeds at I.ender's option either to restoration or repaur of the Propertv
or to the sums secured by this Nortgage_
Unless Lender and Borrower otherwise agree in wnting, any such application of proceeds to prineipal shall not extend
or postpone the due date of the monthly installmcnts refcrred to in paragraphc I anJ 2 hereof or change the amount o[
suc6 installments. If under paragraph IS hereo( the Prof.erty is acyuired by LenJer, ali right, title and interest of Bor~ower
in and to any Ruurance policies and in and to the proceeds thereof resulting from damage to the Property prior to th~ sale
or acquisition shall pass to Lcnder to the extent of the sums sccured by this Mortgage immediately prior to such sale or
acquisition.
6. Preservation and !lfaintenance of Property; Leasehulds; Condominiums; Plsnned Ut~t Developmenfs. Borrowcr
shall keep the Pr~perty in good repair and shall not comroi~ Kaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease ~( th~s Mortgage ~c on a leaschold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower's obl~gations under the declaration
or covenants creaang~or governing ~he condominium or planned unit development, the by-laws and regulations of the
condominium or planoed unit develo~ment, and constituent Ja:umentti._ It a condominium or planned unit development
rider ~s executed by Borrower and recorded together wi~h th~s Mortgage, the covenants and agreements of such rider
shall be incorporated imo and shail amend anJ supplement the covenants and agreements of this Mortgage as i( the riJer
were a part t~ereof.
7. Protection ot Lender's Securfty. 1( B~rrower fa~l~ t~~ perform the covenanls and agreements coriained in this
Mortgage, or if any action or proceeding ~t cummeneed w•h~ch materially afiects I.ender's interest in the Property,
including. but nc~t limited to. eminent domain. inu~lvency, c~•de enforcement, or arrangemenls or proceedings invoh~ing a
bankrupt or decedent. then I.ender at I.ender's option, upon no~~ce to Borrower, ma~ make such appearances, dishurse such
sums and lake sueh action as is nece~sary tu protect Lender'c ~n~er~st. inrliiJmg. but not limited to, d~sbursement of
reasonab{c at~omey-s (ces and entry u~x~n the Propcr~y ~o makc repair~. I( I.cnder reyuired mortgage inwrance as a
conJiUon o( makmg ~hc loan secured by thu M~~neaFe, B~rrr•wer sh.ill p•r~• thr premiums requireJ to maintain such
insurance in cfTcct unlil tiuch umc a~ ~hc reyuircmcm for wch m;uran:c Icrminatc~ m accordancc with Botrowcr's and
ao~K:34? ~A~E 3~1
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